Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Safety
• Environmental Protection
• Our People
• Community Engagement

Environmental Achievements

• Achieved average energy intensity of 42.6 kWh/m2
• Staff turnover rate decreased from 25% in 2017 to 13.5% in 2018
• No reported incident of workplace safety incidents in 2018
• No incident of non-compliance with environmental laws and regulations in 2018

Social Achievements

• Achieved 3,311 total staff training hours or 14.5 training hours per employee
• Achieved 71% engagement rate in conducting performance appraisal and identifying required training programs
• Employees volunteered at The Breadline Group
• Contributed to the National Arthritis Foundation and AIN Society

Governance Achievements

• Established a Sustainability Task Force
• No major incident of corruption or public legal action brought against the Group during the reporting period
• No interested person transactions with a value of more than S$100,000 during the financial year ended December 31, 2018

Climate Goals & Targets

Environmental Challenges

• Reducing energy consumption
• Maintaining healthy staff turnover rate

Mitigation Strategies

• Analyse and monitor energy use and achieve 1% energy saving
• Continue to improve employee engagement and satisfaction

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable procurement in the selection of materials and suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards “Core” option, SGX’s “Comply or Explain” requirements

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-saving components in our final products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Product safety and quality
• Environmental protection
• Employee well-being

Environmental Achievements

• Achieved average energy intensity of 3.0 kWh/man hour (14.3% reduction)
• Zero incidents of environmental non-compliance
• Implemented energy-saving initiatives (switching off lights, maintaining AC temperature, LED lights, etc.)
• Improved production accuracy and incorporated a product recovery system to recycle used gases and liquids at ACS (China)
• Upgraded fluorescent lights to LED lights at ATAC (UK), reducing energy consumption by an expected 24%

Social Achievements

• Provided adequate health and safety training for all employees
• No reported incident of workplace safety incidents
• Promotes gender and age diversity in Board, key management and workforce
• Provides employee benefits (healthcare, insurance, parental leave)
• Conducts annual performance reviews and identifies training needs

Governance Achievements

• Established a Sustainability Task Force
• Adopts a precautionary approach in strategic decision making and daily operations
• No incident of corruption or public legal action

Climate Goals & Targets

Environmental Challenges

• Staff turnover rate increased from 13.5% in FY2018 to 17.4% in FY2019
• Group-wide average of 5.5 training hours per employee per annum (below target of 16 hours)

Mitigation Strategies

• Continue to improve employee engagement and satisfaction to maintain a healthy staff turnover rate
• Continue to review training programme for employee development and work to meet the 16 training hours target

Supply Chain Management

Responsible Procurement

• Stringent controls over the quality of components sourced from suppliers
• Every component used for assembly of the final product must be granted with a Certificate of Conformity of safety before being procured

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards “Core” option

Sustainable Products & Innovation

• Energy-saving components in products

Environmental Metrics

ESG Focus Areas

• Governance and Ethics
• Economic Performance
• Product Safety
• Protecting the Environment
• Human Capital
• Corporate Social Responsibility

Environmental Achievements

• Reduced energy consumption by 8.5% compared to FY2020 (988,549 kWh in 2021 vs 1,080,278 kWh in 2020), despite increased consumption in Singapore offices.
• Reduced energy intensity to 3.0 kWh/man-hour in 2021 from 3.3 kWh/man-hour in 2020.
• Reduced Scope 2 GHG emissions.
• Implemented energy-saving initiatives such as switching off lights during non-operating hours, maintaining air-conditioning at 24 degrees Celsius, and a go-paperless initiative.
• Implemented additional measures to improve operational productivity and reduce resource wastage at ACS (China) and ATAC (UK), including installing LED lights and a product recovery system.

Social Achievements

• Implemented safe management measures (SMM) to minimize COVID-19 transmission risks, resulting in zero reported incidents of transmission among employees.
• Provided adequate health and safety training for all employees at manufacturing facilities.
• Achieved an average employee turnover rate of 5% in 2021, down from 27% in 2020.
• 88% of employees participated in performance reviews in 2021.
• Promotes gender and age diversity in the Board, key management, and workforce.

Governance Achievements

• Established a Sustainability Task Force to implement and manage sustainability measures.
• Implemented an Employee Code of Conduct with a firm stance against corruption and bribery.
• Established whistle-blowing procedures.
• Complies with the Personal Data Protection Act (2012) and had no reported breaches in 2021.
• Full compliance with relevant tax laws and regulations in all jurisdictions.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting global economy and employee health and safety.
• COVID-19 restrictions limiting in-person training and performance reviews.

Mitigation Strategies

• Implemented safe management measures (SMM) to address COVID-19 risks.
• Adjusted training programs to accommodate COVID-19 restrictions.

Supply Chain Management

Responsible Procurement

• Stringent controls over the quality of components sourced from suppliers; every component must have a Certificate of Conformity of safety before procurement.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 13 (Climate Action)

The Group's contributions to these goals are highlighted in the report.

Sustainable Products & Innovation

• Energy-saving components in products; engineering technologies to reduce carbon emissions and energy consumption of analysers.

Environmental Metrics

ESG Focus Areas

• Governance and Ethics
• Economic Performance
• Product Safety
• Protecting the Environment
• Human Capital
• Corporate Social Responsibility

Environmental Achievements

• Implemented energy-saving measures such as turning off lights during non-operating hours and maintaining air-conditioning temperature at 24 degrees Celsius.
• Implemented a go-paperless initiative to reduce paper usage and wastage.
• CAECN implemented measures to improve operational productivity and reduce resource wastage, including a product recovery system to recycle used gases and liquids, installation of photocell light sensors and audio control lights, replacement of lights with LEDs, and regular servicing of heavy equipment.

Social Achievements

• Increased female representation in the firm from 33% to 40%.
• Achieved 95% employee participation in performance reviews (up from 88% in 2021).
• Provided valued assistance to two needy families in Singapore through the Breadline donation program.
• Encouraged staff to use reusable cutlery and lunchboxes to reduce plastic waste.

Governance Achievements

• Established a whistle-blowing procedure.
• Maintained zero incidents of corruption or public legal action.
• Ensured full compliance with applicable tax laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Group's energy consumption and GHG emissions increased in FY2022 compared to FY2021 due to factors including overtime work to fulfill backlog orders, use of high-electricity-consuming painting equipment, and factory renovation requiring leasing of additional space.
• One workplace safety incident was reported at CAESG.

Mitigation Strategies

• CAESG emphasized safe work practices and instructed employees to intervene when unsafe acts are observed.
• The Group is in the process of identifying major sources of energy consumption outside of the organization and developing a system to measure external energy consumption and scope 3 GHG emissions.

Supply Chain Management

Responsible Procurement

• Strict controls to ensure the quality of components procured from suppliers, requiring a Certificate of Conformity of Safety prior to procurement.

Climate-Related Risks & Opportunities

Transition Risks

• Heightened costs or other factors that could impact the organisation's competitiveness due to government regulations on activities that contribute to climate change.

Opportunities

• New markets and technologies developed as limits on GHG emissions are implemented.

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 9001:2015, Declaration of Conformity, ATEx, IECEx Certificate of Conformity, CSA

UN Sustainable Development Goals

• 4
• 5
• 8
• 9
• 12
• 16

The Group's focus on sustainability is aimed at making a positive impact on the planet, the communities we serve, and the financial well-being of our stakeholders. We have aligned our practices with the United Nations Sustainable Development Goals (SDGs), which have been integrated into our Report.

Sustainable Products & Innovation

• Energy-efficient components in analyzers.

Environmental Metrics

ESG Focus Areas

• Governance and Ethics
• Economic Performance
• Customer Safety and Animal Feed Quality
• Protecting the Environment
• Human Capital
• Corporate Social Responsibility

Environmental Achievements

• Implemented waste management processes to minimize environmental impact at AAI's Satellite Dryer in Indonesia.
• Achieved zero incidents of environmental non-compliance.

Social Achievements

• Implemented Farmer Engagement Programme (FEP) in Indonesia to support local corn farmers.
• Achieved zero workplace fatalities or permanent disabilities; one minor workplace safety incident reported and addressed.

Governance Achievements

• Established a Sustainability Task Force to oversee sustainability initiatives.
• Maintained zero incidents of corruption or non-compliance with SGX-ST listing rules or the Code of Corporate Governance.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to the commencement of the Satellite Dryer operation in Indonesia.
• Potential financial impacts from ENSO events in Indonesia (20% reduction in corn yields, 27% decrease in profitability).
• Transition risks in Indonesia related to evolving regulations, market preferences, and technology advancements.

Mitigation Strategies

• Implementing energy-saving measures (lights, air conditioning).
• Exploring the integration of green biomass from corn plantation waste as a renewable energy source.
• Active engagement with regulatory bodies, investment in sustainable practices, and exploration of innovative technologies.

Supply Chain Management

Responsible Procurement

• Sourcing corn locally from farmers in Sulawesi, Indonesia.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (droughts, floods)
• ENSO events

Transition Risks

• Changing regulatory landscape
• Shifts in market preferences
• Technological advancements

Opportunities

• Development of energy-efficient products
• Integration of renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations

Third-party Assurance: Internal audit review by Baker Tilly Consultancy (Singapore) Pte. Ltd.

UN Sustainable Development Goals

• 4
• 5
• 8
• 9
• 12
• 16

The Group's contributions to the UN SDGs are highlighted in the report.